Legal Question in Business Law in Florida

Stock Issuance for New Corporation

What consideration should be investigated when forming a new s-corporation and selecting the amount of stock to be authorized for issuance? I have several private investors interested in the company. What's the difference between issuing 5,000 shares versus 5,000,000 shares? Are the considerations that I am over looking? If I issue 5,000 shares of common stock, once all shares are consumed/issued how do I re-issue or issue additional stock?


Asked on 1/02/01, 3:03 pm

1 Answer from Attorneys
Alexander M. Rosenfeld Rosenfeld & Stein, P.A.

Re: Stock Issuance for New Corporation

The differnces in the number of shares is the amountyou pay to state for the capitalized shares of the corporation. Additionally, subS restrictions may effect the number of shares the corp. may issue. Sub S does restrict the number of shareholders and who the may be.

Once the corp. issues all its authorized shares, it must change its charter to allow for the authority to issue more shares.

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Answered on 1/05/01, 2:16 pm


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